The lender posted a profit before tax (PBT) of Rs 289.66 crore for the fourth quarter ended March 2020 on a healthy rise in net interest income and a sharp drop in provisions and contingencies. The bank had posted a loss before tax of Rs 7,136 90 crore in quarter ended March 2019 (Q4FY19).
While the lender's net profit for period under review stood at Rs 135.39 crore compared to a net loss of Rs 4,918.44 crore in Q4FY19, its net loss for Q4FY20 fell to Rs 12,887.34 crore from Rs 15,116.30 crore in FY19.
The bank's net interest income (NII) rose by 46 per cent to Rs 2,356 crore in Q4FY20 from Rs 1,609 crore Q4FY19.
As of March 31, 2020, the bank has made Covid-19 related provisions of Rs 247 crore. The provision made by the bank is more than the minimum required according to RBI guidelines.
The bank has made an additional provision of Rs 431.05 crore during Q4FY20, over and above the regulatory norms for certain borrower accounts due to the inherent risk and uncertainty of recovery in these identified accounts.
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The asset quality of bank, which is under Prompt Corrective Action (PCA), showed an improvement in slippage during the fourth quarter. The gross non-performing Assets (GNPAs) stood at 27.53 per cent in Q4FY20 as against 27.47 per cent in Q4FY19.
While the gross NPAs stood at 28.72 per cent at end of December 2019 (Q3FY20), net NPAs declined to 4.19 per cent in March 2020 from 10.11 per cent in March 2019.